Joris Jellema, Givaudan: “The challenge is to model the trend”

Givaudan, the global leader in flavours and fragrances, began its long journey of innovation and acquisition 250 years ago. From its beginnings in Grasse, France, in 1768 to the recent Naturex acquisition, the company works in close collaboration with food, beverage, consumer product and fragrance partners, to develop tastes and scents that delight consumers the world over. In its relentless drive to innovate, 10 percent of annual turnover is invested in research in order to uncover new and exciting ingredients and technologies that ‘engage your senses’. Headquartered in Switzerland with local presence in over 100 locations, the company has more than 11,100 employees worldwide and in 2017 achieved sales of CHF 5.1 billion.

Joris Jellema, Global Head of Supply Chain in the Flavours Division, joined the company in 1995, and has held positions in supply chain and operations in the Netherlands, UK, Singapore, Indonesia. He is currently based in Kemptthal, Switzerland. The flavours division generates about 55 percent of company sales, last year worth 2,708 millionCHF. In his role Joris provides functional supply chain leadership to the regional supply chain heads and drives the strategic supply chain agenda, in close collaboration with the fragrances division as well as with procurement. As a member of the global operations team, he works closely with the head of manufacturing excellence as well as with the regional operations heads.

What is the strategy of the Company (or Division/Supply Chain): product leadership, operational excellence or customer intimacy?

“The divisional strategy is focused on customer needs in an ever-changing environment. We are committed to being the innovation partner of choice by offering customers superior and sustainable solutions. Our innovation reflects their needs, from the small food producers to global FMCG companies. We use many natural ingredients and operate a sustainable business model to create value for the many stakeholders we work with. In this very creative and innovative environment agility in the supply chain is key. Our aim is to achieve maximum agility in all areas for which we have some 25 initiatives to deal with a more fragmented product offering, to improving visibility, to reducing the lead-time of new product launches, which globally amount to around 300 new products each month.”

What is your responsibility regarding the supply chain?

“My supply chain responsibilities are focused on planning and delivery in close collaboration with our global procurement organisation and manufacturing plants as well as my counterparts in the fragrance division. The supply chain leadership team is made up of four regional supply chain heads, global head of transport, global head of planning and global head of warehousing.”

What are the main business challenges that drive supply chain projects at the moment?

“Consumer preferences are changing rapidly which results in different, more varied products being offered by our customers. Anybody who visits the local supermarket regularly will have noticed this development in the last few years. More and more consumers give more consideration to their eating habits and the ingredients in their favourite brands. Consumer awareness comes in many dimensions, from understanding the ethical side of the supply chain and preferences for certain key ingredients to the importance of organic and natural elements. As market leader in natural flavours, Givaudan is keen to provide solutions for all tastes and this requires more transparency, smaller average order and pack-sizes, a larger range of natural ingredients available and a more agile supply chain. We aim to have more visibility in inbound supply chain and, with thirty factories in four regions, we manufacturer as close to customers as possible.”

Which supply chain challenges keep you awake at night?

“Consumers want natural flavours, yet what our planet can offer is limited. At Givaudan, we invest to ensure access to natural ingredients, from our origination programmes where we work with farmers in a variety of countries to our joint ventures with citrus growers. Our raw materials come from all corners of the globe and we have developed a unique raw material risk assessment and mitigation programme between procurement and supply chain to anticipate risks and maximise our ability to serve. Sometimes sourcing raw materials uniquely from one region or country, in particular botanical materials, is unavoidable. Here, a bad storm, a prolonged draught or a wet spring can potentially limit our ability to supply. Also, in China for example, we find that suppliers might suddenly have to close their factories as they adjust to comply with the country’s new environmental regulations.” … … …